AllianzGI Principal Adverse Impact Statement Page 5 Engaging with selected investee companies to induce improved management of sustainability risks and to reduce adverse impacts - For more details see the next section . ▪ Specific actions addressing principal adverse impact for sustainable i nvestment strategies - For sustai nable investment strategies, minimum exclusion criteria are applied to the listed corporate issuers that are regarded as creating significant adverse impacts. Allianz Global Investors sustainable Investment strategies refrain at least from investing in sec urities issued by: – companies with severe controversies regarding the principles of the UN Global Compact 8 – companies involved in controversial weapons (anti - personnel mines, cluster munitions, chemical weapons, biological weapons, depleted uranium, white phosphorus and nuclear weapons); – companies that derive more than certain amount of their revenues from the involvement in military equipment and services; – companies that derive more than certain amount of their revenue from thermal coal extraction; – u tility companies that generate more than certain amount of their revenues from coal; – companies involved in the production of tobacco; and companies involved in the distribution of tobacco in excess of certain amount of their revenues. For more information please visit our website https://regulatory.Allianz Global Investors.com/en/home/esg . 4 . Stewardship Activities Engagement Allianz Global Investors sees the value of engagement in sharing our knowledge, views and perspectives with boards and management of investee companies to help improve performance, reduce adverse impact on environment and society and to better assure their long - term business prospects. Therefore, Allianz Global Investors enters a dialogue with selected listed investee corporates, where Allianz Global Investors identifies systematic sustainability risks and/or significant principal adverse impacts. The engag ement aims to strengthen the investee company’s management of ESG issues and spur improvements of its overall sustainability performance. Engagement topics include among others carbon emissions and management, health & safety, toxic emissions and waste, bi odiversity and land use. In addition to direct company engagements, we undertake targeted thematic engagements, public policy engagements and participate in collaborative engagement initiatives aimed at improving corporate practices and disclosure of inf ormation at an industry or market level. Further details can be found in our Stewardship Statement . Proxy Voting Active investment strategies benefit from the exercise of voting rights. Allianz Global Investors sees proxy voting as a core part of our investment and stewardship processes. We have robust policies for major corporate governance and proxy voting matters and put substantial effort into devel oping and debating our views and positions. Our proxy voting decision - making process involves close collaboration between portfolio managers, research analysts and sustainability analysts. There is a direct link between proxy voting and company engagement, while corporate governance analysis undertaken for proxy voting purposes feeds into investment research. To ensure proper stewardship of invested corporates Allianz Global Investors h as implemented Global Corporate Governance and Proxy Voting Guidelines for public market equity investments. 5. List of Responsible Business Conduct Codes and Internationally Recognized Standards for Due Diligence and Reporting of Principal Adverse Impact Allianz Global Investors is a signatory to and member of a number of responsible business code of conducts and internationally recognized standards that are related to addressing principal adverse impacts. Key international standards / initiatives / colla borative networks are: 8 More information can be found at https://www.unglobalcompact.org .